Ireland’s premier has warned that the “old order is changing”, as he questioned whether the European Union and the US could sit around a negotiating table following Donald Trump’s tariff announcements.
Micheal Martin said the looming tariffs are the “most serious issue” to face the Irish economy, adding that the scale of tariffs will be very significant.
Mr Trump is expected to apply import taxes on goods going to the US from around the world in a White House statement at 9pm later today.
Irish politicians and companies are braced for the impact of the tariffs, which are set to have a significant impact on the economy.
Mr Trump is expected to target EU countries, including Ireland, with tariffs of about 20% on imports into the US.
Tariffs on all Irish exports will lead to higher costs, particularly in the pharma sector.
Mr Martin told the Irish parliament that neither Ireland nor the EU started the threat of tariffs.
“This is, without question, the most serious issue to face the Irish economy in a long time, and it’s clear that the scale of these tariffs will be very, very significant in European terms,” Mr Martin added.
“I would, in the first instance, say Ireland does not believe in tariffs. The European Union does not believe in tariffs, and the European Union doesn’t want tariffs.
“So the European Union hasn’t started this. Ireland hasn’t started this.
“The bottom line is this, however, that ultimately, to get this into a sustainable landing zone for the future, negotiations are key.
“Part of the approach in designing any countermeasures from the European Union will be the negotiating table.
“Can we get this to a negotiating table where you can get a reasonable, settled pattern? It will not be status quo, and it will not be what it is now.
“I think the old order is changing, and it’s regrettable we are in a Europe of increased protectionism. That is not good for Ireland. It’s not good for open economies.”
He said he has huge concerns for the agri-food sector, as well as beverages, spirits, and the pharma industry.
“Then we have to work within the European Union, make sure that other sectors aren’t damaged by any potential counter measures,” he added.
“So the Government strategy is to optimise the protection of Irish jobs. That is the fundamental objective, to protect Irish jobs.”
He also agreed to a meeting of party leaders to take place after the tariffs have been announced.
Sinn Fein leader Mary Lou McDonald said the “hard reality” is that the Irish economy is “particularly exposed”.
She said that the United States is Ireland’s largest export market, adding there is “real concern” around the impact on Ireland’s pharmaceutical and tech sectors.
Ms McDonald said: “Whilst the severity and scope of these tariffs is yet unknown, it is clear that this will present a significant economic challenge to Ireland.
“As the European Union formulates its response, the chief responsibility of government is to stand up for Ireland’s interests, to protect Irish jobs, Irish industry and the prosperity of our people, to ensure that any action taken doesn’t exacerbate potential.
“It’s crucial, therefore, that there is no knee jerk reaction from the EU. Counter tariffs are not in Ireland’s interest.”
She added: “The focus on infrastructure, on skills, on R&D (research and development), and on basic public services, including child care services, the absolute imperative to provide working people with the roof over their heads is now front and centre.”
On Tuesday, the Minister for Finance Paschal Donohoe warned that Ireland is facing a possible slump in employment growth and job creation, a decline in tax revenue, as well as a delay in future income tax cuts.
Mr Donohoe also said the Government will “consider” increasing income tax over the years, but any decision would be based on the tariffs, and how long they will be in place.
